Ameresco expands, extends $60 million revolver, $40 million term loan

By Susanna Moon

Chicago, July 7 - Ameresco, Inc. amended its credit facility, consisting of a $60 million revolving credit facility and a $40 million term loan, with Bank of America, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The facility, which expired June 30, now matures on June 30, 2016. Interest will be Libor plus 175 basis points.

Ameresco may boost the revolver limits by another $25 million with additional lender commitments. The revolver was undrawn at closing.

Proceeds will be used for general corporate purposes, including acquisitions, refinancing of debt and working capital.

There is an unused fee of 37.5 bps.

Webster Bank, NA is also a lender.

The revolver does not require amortization of principal. The term loan requires quarterly principal payments of $1,428,571.43, with the balance due at maturity.

The loans may be prepaid without penalty or fees, other than reimbursement of any breakage and deployment costs for Libor debt.

The facility limits Ameresco's and its subsidiaries' ability to incur more debt; incur liens or guarantee obligations; merge, liquidate or dispose of assets; make acquisitions or other investments; enter into hedging agreements; pay dividends and other distributions and engage in transactions with affiliates, except in the ordinary course of business on an arm's-length basis, the filing noted.

Under the loan terms, Ameresco and its subsidiaries may not invest cash or property in, or loan to, Ameresco's core subsidiaries for total amounts exceeding 49% of Ameresco's consolidated stockholders' equity.

In addition, Ameresco and its subsidiaries must maintain the following financial covenants:

• A minimum EBITDA of $40 million on a rolling four-quarter basis;

• A ratio of total funded debt to EBITDA of less than 2 times;

• A maximum energy conservation project financing debt of $300 million; and

• A debt service coverage ratio of at least 1.5 to 1 times.

Ameresco is a Framingham, Mass.-based provider of energy efficiency solutions for facilities throughout North America.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.